Question

An underdeveloped economy is characterised by ______.

Options

• High per capita real income

• Large proportion of the workforce in the service sector

• State of deprivation of large proportion of population

• All of these

Answer 1

An underdeveloped economy is characterised by state of deprivation of large proportion of population.

Explanation:

An underdeveloped economy is characterized by low per capita income, low standard of living, high poverty, and a large portion of the population suffering from deprivation. It does not have high per capita real income or a predominance of the service sector.